Investment Decision Behavior of Indian Retail Investors with Respect to IPOs

Abstract

Retail investors consider time horizon, liquidity, risk, and return while making investing decisions in IPOs in order to achieve their financial goals. But limited financial literacy, information overload, emotional decision- making, lack of diversification, high transaction costs, and regulatory complexity are some of the difficulties Indian ordinary investors face while investing in IPO. Examining the variables influencing Indian retail investors' investment choices and decision-making procedures in IPOs is the primary purpose of this research. The researcher collected data from primary sources. The data was collected from 92 investors using a random sample method. The stated hypotheses were assessed at the 0.05 level of significance using the ANOVA test. Various aspects of IPOs, such as brand, profitability, financial standing, product offerings, size, industry track record, price bands, promoter track record, and risks, play an important role in forming investor perceptions on the basis of occupation. The result also states that there are significant differences in means of various groups of respondents on the basis of annual savings observed for the brand and reputation of the IPO-issuing company, while for other factors, there are no significant differences in means. Key Words: Investment Decision, Initial Public Offerings, Indian Retail Investors, Investment behaviour